The three most common inventory cost flow methods are a.FIFO, LIFO, and weighted average cost. b.FIFO, LIFO, and specific identification. c.FIFO, retail, and weighted average cost. d.None of these choices are correct.

The three most common inventory cost flow methods are a.FIFO, LIFO, and weighted average cost. b.FIFO, LIFO, and specific identification. c.FIFO, retail, and weighted average cost. d.None of these choices are correct.

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Description: The three most common inventory cost flow methods area.FIFO, LIFO, and weighted average cost.b.FIFO, LIFO, and specific identification.c.FIFO, retail, and weighted average cost.d.None of these choices are correct.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA1: International Financial Reporting Standards

Section: Chapter Questions

Problem 8MCQ

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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The three most common inventory cost flow methods are

a.FIFO, LIFO, and weighted average cost.

b.FIFO, LIFO, and specific identification.

c.FIFO, retail, and weighted average cost.

d.None of these choices are correct.

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